Since all groups of directives provide access to loan-financed agreements, the level of contract management is the power of discernment. An advanced group policy item manages the lifecycle of supplier contracts: some CMOs charge a participation fee to their members, others charge suppliers and some can do both. Some group policy topics require members to maintain a certain volume of purchase, while others do not. It is important to fully understand the parameters before entering into a membership agreement. The revenues from a group policy item come from an “administrative” levy. GPOs can collect an “administrative tax” of up to 3.0% of the sales volume from suppliers whose contracts they negotiate when they sell products to their member hospitals. These royalties have no impact on negotiated prices. They are used to cover the operating costs of the purpose of the group policy. If there is a leftover, it is given to the owners of the GPO; As a result, OPG holders save money on the products they want to buy through group contracts and also receive distributions from the GPO.
GPO general members may also benefit from a certain share of the royalties as part of their membership agreement, although this practice is no longer typical; Therefore, the main advantage of a GPO member is access to heavily discounted prices. Suppliers always pay a management fee for GRO. Whether it is a package or an amount of expenses through the agreement, the funding structure of a GPO is always transparent to its members. OmniA`s partners, for example, do not need a contribution, a minimum order or an expense obligation to join the collective affiliation and benefit from leverage. Visit our Member Organizations page to learn more about HSCA members and their actions. The payment of dues includes purely membership access and member rates for all employees. For more information about HSCA and participation, see our membership information folder. As members continue to use GPO agreements, contracts are permanently managed by the OPG. As more members join and more expenses go through the agreements, they can negotiate even lower discounts and/or improved selling conditions with suppliers. At this point, the purpose of the group directive can further reduce risks and create a path of continuous improvement by contacting multiple staff at multiple levels within supplier organizations. In the past, companies have used GPOs to gain quick access to cost savings.